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Dhanvir Sharma Exception Of Law of Demand in case of Giffen Goods
and Veblen Goods

What is Law of Demand ? :

What is Law of Demand ? The Law of Demand states that other things remaining constant, quantity demanded of a commodity increase with the fall in price and diminishes when price increases.

Exception of Law of Demand :

Exception of Law of Demand

Articles of Distinction or Veblan Goods :

Articles of Distinction or Veblan Goods .

:

American Economist, Veblan.
According to him, the demand for the articles of distinction like diamonds and jewellery is more when their price is high,
=> greater the price of the commodity, the greater the utility.
If their price falls, they will no longer be considered as article of distinction and so their demand will decrease.

Giffen Goods :

Giffen Goods

This fact was analysed by Sir Robert Giffen, so it is also called Giffen Paradox.Giffen goods are those goods whose price effect is positive and income effect is negative.In case of Price effect is positive.Demand rise with the rise in price & falls with the falls in price.. :

This fact was analysed by Sir Robert Giffen, so it is also called Giffen Paradox.Giffen goods are those goods whose price effect is positive and income effect is negative.In case of Price effect is positive.Demand rise with the rise in price & falls with the falls in price..